Request a Appointment
What is foreclosure and how does it work?
Foreclosure is a legal process that a lender initiates when a borrower fails to meet the repayment terms of their mortgage. This process allows the lender to take possession of the property, evict the homeowner, and sell the home to recover the money lent.
The foreclosure process in Georgia is generally non-judicial, meaning it doesn't go through the court system. Here's a detailed breakdown of how it works:
- Missed Payments:
Foreclosure proceedings begin when a borrower misses their mortgage payments. Generally, lenders may not initiate foreclosure until the borrower is more than 120 days delinquent.
2.Notice of Default:
The lender sends a notice of default to the borrower after the first 90 days of missed payments. This notice informs the borrower that they are in default and need to catch up on missed payments within a certain timeframe to avoid foreclosure.
3.Power of Sale Clause
Most mortgages in Georgia include a "power of sale" clause that allows the lender to sell the property without a court order if the borrower defaults on the loan.
4.Notice of Sale:
If the borrower does not catch up on their payments, the lender will issue a notice of sale. In Georgia, this notice must be sent to the borrower, published in a local newspaper, and posted on the courthouse door at least four weeks before the scheduled sale date.
5.Foreclosure Auction:
The property is then sold at a public auction to the highest bidder. The auction is conducted by the lender's attorney or a representative of the lender.
6.Right of Redemption:
Unlike some states, Georgia does not provide a statutory right of redemption, which would allow the borrower to reclaim their property after the foreclosure sale by paying the purchase price.
7.Deficiency Judgments:
In Georgia, if the foreclosure sale price is less than the amount owed on the mortgage, the lender can obtain a deficiency judgment against the borrower for the difference.
8.Eviction:
After the foreclosure sale, the new owner can initiate eviction proceedings if the former homeowner does not vacate the property.
This is a general overview and the process can vary based on the terms of the mortgage, the lender, and other factors. Homeowners facing foreclosure should consult with a legal professional to understand their rights and options.
© All Copyrights 2023 Metropolitan Realty Group
Website powered by LeadMode Digital Marketing
